Finding Text
FINDING No. 2023-001: Section 207/223(f) Mortgage Insurance for the Refinancing
of Existing Multifamily Housing Projects, ALN 14.155
Finding Resolution Status: Unresolved.
Information on Universe
Population Size:
All replacement reserve deposits for the year ended June 30,
2023.
Sample Size Information: Required replacement reserve deposits for the year ended
June 30, 2023.
Identification of Repeat Finding
and Finding Reference Number:
No.
Criteria: In accordance with HUD, required monthly deposits must be
made to the Project’s reserve for replacement account.
Statement of Condition: The Project overfunded the account by $468.
Cause: The Project implemented a funding increase incorrectly during
the current year resulting in excess deposits.
Effect or Potential Effect: Overfunded reserve for replacements.
Auditor Non-Compliance Code: N – Reserve for Replacements Deposits.
Reporting Views of Responsible
Officials:
The Project agrees with the finding and the auditor’s
recommendation will be adopted.
Recommendation: The Project should implement procedures to ensure that the
correct amount is deposited into the replacement reserve
account each month. A HUD approved 9250 should be
obtained to remove excess funds. Response Indicator: Agree.
Completion Date: 6/30/2024
Response: The lender inadvertently took the retro R4R increase of $468.00
again after already being paid in the previous month. A 9250 will
be prepared so that the over funding can be deposited back to
the account.